Answer:
The amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows is $344,000.
Explanation:
Pharoah Corporation
Statement of cash flows (extract)
Proceeds from common stock $256,000
Proceed from bond payable $466,000
Dividend paid ($333,000)
Purchase of treasury stock ($45,000)
Net cash flows from financing activities $344,000
Note that the payment of accounts payable and collection of notes receivable only affect the operating activities section of the cash flows.
Answer:
$4,650,000,000
Explanation:
We will use the formula below to calculate the enterprise value of Correct inc.
Enterprise value = Market value capital and debts - Cash and investments
= 100 million diluted shares × 37.50 per share + $1 billion of debt outstanding - $100 million cash
= $3750m + $1000m - $100m
= $4,650,000,000.
Answer:
$81.52
Explanation:
The current share price is the present value of future dividends as well as the present value of the terminal value of dividends beyond year 6 as shown thus:
Current dividend=$3.95
Year 1 dividend=$3.95*(1+5%)=$4.15
Year 2 dividend=$4.15*(1+5%)=$4.36
Year 3 dividend=$4.36*(1+5%)=$4.58
The required rate of return(discount rate) for the dividends in the FIRST 3 years above is 14%
Year 4 dividend=$4.58*(1+5%)=$4.81
Year 5 dividend=$4.81*(1+5%)=$5.05
Year 6 dividend=$5.05*(1+5%)=$5.30
The required rate of return(discount rate) for the dividends in the NEXT 3 years above is 12%
Terminal value of dividend=Year 6 dividend*(1+growth rate)/(rate of return-growth rate)
growth rate=5%
rate of return=10%(rate of return thereafter)
terminal value=$5.30*(1+5%)/(10%-5%)
terminal value=$111.30
current share price=$4.15/(1+14%)+$4.36/(1+14%)^2+$4.58/(1+14%)^3+$4.81/(1+12%)^4+$5.05/(1+12%)^5+$5.30/(1+12%)^6+$111.30/(1+10%)^6
current share price=$81.52
I believe the answer is: Term insurance
Term insurance is significantly cheaper compared to other type of insurance because it only cover risk plan without considering potential return in the future.
The amount of term insurance usually paid at a fixed rate on a limited period of time.
